Compensation Structure and Pay Upon Appointment

This policy defines the parameters for setting salaries of UW–Madison employees, including Faculty, Limited appointees, Academic Staff, and University Staff. This policy supports the HR Design Strategic Plan accepted by the UW System Board of Regents on December 7, 2012. It applies to all salaries regardless of funding source.

Functional Owner

Assistant Vice Chancellor for Human Resources

Executive Sponsor

Vice Chancellor for Finance and Administration

Policy Contact

Director, Titling and Compensation

Policy Summary

This policy defines the parameters for setting salaries of UW–Madison employees, including Faculty, Limited appointees, Academic Staff, and University Staff. This policy supports the HR Design Strategic Plan accepted by the UW System Board of Regents on December 7, 2012. It applies to all salaries regardless of funding source.

Who This Policy Applies To

This policy applies to Faculty, Academic Staff, Limited appointees, and University Staff. This policy does not apply to employees in the following employment categories: Temporary Employee, Student Hourly, Student Assistant, or Employee-in-Training.

Rationale

In accordance with Regent Policy Document 87-15 (revised June 9, 2000), the UW System Board of Regents delegated authority to the UW System President to approve personnel transactions for which the salary does not exceed 75 percent of the System President's salary. On June 27, 2000, the System President extended this delegated authority to system chancellors, who may approve personnel transactions when the salary does not exceed 75 percent of the UW System President's salary.

As a result of Wis. Stat 36.115(3), UW–Madison must incorporate pay provisions of Chapter 230 and Chapter 36 of Wisconsin State Statutes into the new university personnel system effective July 1, 2015. This system must incorporate pay upon appointment for UW–Madison employees.

Policy Detail

Section A – Compensation Structure

There are seven broad compensation categories: A, B, C, D, E, F, and G. These categories cover the compensation needs and practices of the categories described in UW–Madison Employment Categories policy.

Compensation Category A

Compensation Category A is a salary grade structure composed of 13 salary ranges, each with a minimum and maximum dollar value. Administrative directors, administrative officers, program managers, and professional Academic Staff title groups are assigned to Category A. This category’s work levels typically reflect both personal growth and assumption of some level of managerial responsibility. As a result, compensable factors reflect education and experience as well as impact on the organization and level of managerial responsibility.

In the administrative director and dean groups, the associate and assistant prefixes are assigned one and two grades, respectively, below the rating level of the director. In the professional group, the associate prefix is assigned one grade below the no-prefix level, and the senior and distinguished prefixes are assigned one and two grades above the no-prefix salary grade.

The dollar values of the salary ranges are based on market surveys of comparable positions in the external competitive market. The midpoint of each salary range reflects an estimate of the market rates paid for comparable positions assigned to the same salary grade. Historically, the salary range structure for Category A jobs uses a 50 percent "range spread" from the salary minimum. That is, the salary range minimum is set at 80 percent of the range midpoint and the salary range maximum is set at 120 percent of the midpoint. The current structure includes a modification of the range maximums to an additional 10%. Additionally, the dollar values of the pay ranges are revised by the biennial pay plan recommended and approved by the Board of Regents.

Compensation Category B

Compensation Category B is the salary structure that applies to instructional and research Academic Staff titles at the level of researcher or higher. (Emeritus/emerita and military science Faculty are exceptions). Category B is a structure of salary minimums that is linked to the compensation of ranked Faculty. Employees in these titles do some of the work of faculty members and their jobs are defined in terms of specific academic disciplines.

Due to the nature of the work assigned to these titles, title evaluation is not appropriate for Category B. Titles in this compensation category cover a gamut of disciplines. In the academic job market, they command widely varying levels of compensation. Attempting to cover such a wide range of salaries within minimum and maximum levels would create ranges too large to be useful. As a result, only salary minimums are set for instructional and research Academic Staff titles. This situation directly parallels salary setting for Faculty (i.e., minimum but no maximum salaries). The salary linkages between these positions and Faculty are designed to reflect historical salary relationships.

Compensation Category C

In general, this compensation category is for specially defined or statutorily mandated positions. Although a salary range structure may apply, salary range assignments are determined on a case-by-case basis and are typically based on the rate that the person has as a Faculty member. Academic administrators, academic program directors, emeritus/emerita, military science Faculty, and other Academic Staff/Limited title groups are in this compensation category.

Compensation Category D

Compensation Category D refers to salary structures for Faculty. This category also includes employees-in-training, student staff, and other special use title groups (these groups are also addressed in Employment Categories). The Office of Human Resources (OHR) establishes minimum salary levels for ranked Faculty.

Compensation Category E

Compensation Category F

Compensation Category F is the salary structure for University Staff employees, other than Crafts Workers. This structure includes a number of pay schedules. Each has a unique number of ranges, and each range has an established minimum and maximum dollar value. University Staff includes titles that are assigned to a specific salary range and are not exempt from the overtime provisions of the Fair Labor Standards Act (FLSA).

Note: This category also includes University Staff who are exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) as of June 30, 2015 and who have not made the decision to become Academic Staff.

Compensation Category G

Compensation Category G is the salary structure for Crafts Workers in the University Staff employee category. For additional information, please refer to the UW–Madison Crafts Worker Policy.

Section B – Pay-Setting Provisions

Delegation of Personnel Transaction Authority

UW–Madison has the authority to approve personnel transactions for positions in which the salary does not exceed 75 percent of the UW System president’s salary. The Board of Regents must approve transactions when the salary exceeds 75 percent of the UW System president’s salary. Therefore, requests for salaries above this salary threshold for academic positions (e.g., deans, academic program directors, and ranked Faculty) will be submitted to the UW System Office of Academic Affairs for review, while requests for administrative positions (e.g., administrative director titles) will be submitted to the Board of Regents for review and approval.

Authority to Establish Salaries on Appointment

The UW–Madison chancellor has the authority to set salaries within the established pay range for each position title. This authority has been delegated to deans and directors of UW–Madison divisions. Unless OHR has established an extraordinary salary range, no salary rate may be set outside the assigned title’s established pay range.

Pay upon Appointment: Faculty, Limited and Academic Staff

Pay upon appointment to a Faculty, Limited or Academic Staff position will be set between the minimum and the maximum of the established pay range for the title assigned, unless an extraordinary salary range has been established. For example:

For a promotion or title change, the salary rate must be equal to or greater than the salary range minimum for the new title.

When an employee accepts or is placed in a position assigned to a lower salary range, the new salary shall not exceed the new salary range maximum.

When a new salary range minimum is established, the salaries of all employees under the new minimum will be increased to the new minimum.

For Category B and Faculty positions that have no range maximum, employees can be paid up to 75 percent of the System president’s salary unless the Board of Regents gives prior approval to exceed that level.

Pay upon Appointment: University Staff

Pay upon appointment to a University Staff position will be set between the minimum and the midpoint of the established pay range for the title. OHR may approve salaries above the midpoint of the range (see Hiring Above Midpoint). Salaries cannot exceed the maximum of the established pay range for the title unless an extraordinary salary range has been established.

Reemployment After Layoff: Pay upon appointment provisions for University Staff employees reemployed by the UW–Madison after being laid off from UW–Madison will be done in accordance with the appropriate paragraph below:

Reassignment or other Movement as an Alternative to Layoff. Employees that are reassigned as an alternative to layoff and placed in a similar (same or lower level) title to the layoff group for which the staff member qualifies will remain at their current rate of pay. If the employee’s rate of pay exceeds the pay range maximum for the title, the employee will remain at their previous rate of pay for three years. The employee will not be eligible for further base pay increases until the pay range maximum surpasses the employee’s rate of pay. After three years, the employee’s rate of pay will revert to the pay range maximum.

Voluntary Layoff. An employee who volunteers for layoff and then returns to employment at UW–Madison will have their rate of pay set in accordance with the Compensation Structure and Pay Upon Appointment policy upon their return to employment.

Reemployment after Layoff. Employees that have been terminated due to layoff and are placed into a position in the same title in the same division as the layoff occurs as a result of the mandatory placement provisions within the Layoff of University Staff policy, shall retain their last rate of pay plus any intervening adjustments (e.g. Across the Board merit adjustments).

Employees who are reemployed after layoff but are not appointed as a result of the mandatory placement provisions within Layoff of University Staff shall have their pay set in accordance with the Compensation Structure and Pay Upon Appointment policy.

Acting or Interim Appointment Salaries for Administrators

Because administrators are in executive/policy-making positions, it is critical that an acting appointee maintain leadership continuity during temporary leaves of absence or until a position is filled permanently. Salaries for acting and interim appointments can be an important factor in finding a highly qualified person.

The following compensation principles should be considered in setting the salary for acting appointments:

To the extent possible, salary analyses should ensure that salaries offered for acting assignments do not create inequities with comparable positions, both within and between UW System institutions.

When permanent appointments are made, acting or interim appointees can expect to return to their former positions at salaries consistent with those they had before the acting appointment, plus any increases they would have received if they had not accepted the acting responsibility.

Executive Salary Group

The Board of Regents determines the salary range for new senior/vice presidents and provosts/vice chancellors (deputy) as established in Regent Policy 6-5. The Board of Regents has delegated authority to the chancellor to set salaries at the time of hire within approved salary ranges.

Vice Chancellor titles are assigned to UW System salary ranges as noted in Compensation Category E. The salary for an acting appointee must be within the salary range for the position.

Consequences for Non-Compliance

OHR will remove delegation from schools, colleges, and divisions who fail to comply with this policy.